Cultural change coming to rentals market?

The extra workload has recently seen additional staff recruited to bolster the property management team which is based at our head office at Stanway, Colchester. The management of the portfolio is handled completely from this office at Tollgate and this includes everything from accounts to maintenance, referencing, preparation of tenancy agreements and renewals.

At the same time, Steve Wright, Fenn Wright Partner and Head of Lettings in Colchester, believes he is detecting the beginnings of a cultural change in attitudes to renting.

“The large deposits still required by mortgage lenders means that, gradually, the lettings market in the UK is beginning to resemble that in mainland Europe, with a large number of middle-income families occupying rented homes,” Steve says.

While the general mindset is still that paying rent is wasting money that could otherwise be paying off a mortgage, an increasing number of people enjoy the freedom from long-term commitment and maintenance bills that renting brings, he believes.

“The bottom end of the market is the easiest to satisfy because there is a large supply of two bedroom flats and houses on offer from buy-to-let landlords, and this is the size of property most purchase to bolster their portfolios,” Steve says.

“In the £700 to £1,000 market, demand still outstrips supply by a long way, and this is where I would encourage investors to look. At the very top end of the market, with large country mansions and expensive townhouses, lettings take a little longer, but are still being achieved,” he added.

Fenn Wright have recently let a fine modern house on the edge of Dedham on the Essex/Suffolk border for £1,850 per calendar month. The New Farm House has five reception rooms, four bedrooms, 4.5 acres and a covered swimming pool.

Steve Wright (Colchester residential lettings team)
December 2012